Basel Study Shows World’s Largest Banks Are Exposed to $9 Billion in Crypto Assets – Bitcoin News

A first-of-its-kind study published by the Basel Committee on Banking Supervision details that the world’s largest financial institutions are exposed to roughly €9.4 billion (US$9 billion) in crypto assets. The research paper authored by the Basel Committee’s secretariat Renzo Corrias further explains that out of all the banks’ total risk exposure, cryptocurrency exposure is estimated to be around 0.01% of total exposures.

Cryptocurrency exposure of banks is $9 Billion. This amounts to roughly 0.1% of total risk exposure.

A recent study published by the Basel Committee on Banking Supervision (BCBS) explains that the world’s top banks are exposed to around $9 billion worth of cryptocurrencies. The BCBS is a global organization made up of members tied to the world’s central banks and financial institutions from a myriad of jurisdictions.

Basel Study Shows World's Largest Banks Are Exposed to $9 Billion in Crypto Assets

The study, called “Banks’ exposures to cryptoassets – a novel dataset,” was written by secretariat Renzo Corrias. The research aims to create a primary global standard on the “prudential treatment of banks’ [crypto asset] exposures.”

“Total [crypto asset] exposures reported by banks amount to approximately €9.4 billion. Relatively, they account for just 0.4% of total exposures. This is based on the weighted-average basis of all reporting banks. [crypto asset] exposures,” the report written by Corrias details. “When considering the whole sample of banks included in the Basel III monitoring exercise (ie also those that do not report [crypto asset] exposures), the amount shrinks to 0.01% of total exposures.”

Basel Study Shows World's Largest Banks Are Exposed to $9 Billion in Crypto Assets

According to the BCBS, 19 international banks submitted data. Nearly ten of these financial institutions are from the Americas. 7 banks came from Europe and 2 from elsewhere. Corrias points out that these banks are a select group of financial institutions from the total 182 BCBS banks it considered in its Basel III surveillance exercise.

Basel Study Shows World's Largest Banks Are Exposed to $9 Billion in Crypto Assets

Most of the crypto assets reported by banks were bitcoin (BTC), which represented 31% of exposures and ethereum (22%). Banks are not only exposed to USD-backed stablecoins but also crypto assets such as xrp, cardano (ADA), SOLANA (SOL), Stellar (XLM), litecoins (LTC) and solana (SOL).

Corrias explains that the banks’ exposure to crypto is comprised of three different categories which include crypto holdings and lending, clearing and market-making services, and custody/wallet/insurance services. Out of the top five activities that add to the banks’ crypto exposure, the top service is “providing custody or wallet services for [crypto assets].”

In this story, tags
$9 Billion, 0.01% of Total Risk Exposure, 182 banks, 19 banks, Americas, banks, banks crypto, basel committee, Basel Committee’s secretariat, Basel III monitoring exercise., BCBS, Bitcoin (BTC), Crypto asset, crypto asset exposures, Cryptocurrency exposure, Ethereum (ETH), Europe, Financial Institutions, secretariat Renzo Corrias, Stablecoins

What do you think about the recent BCBS report concerning banks’ exposures to crypto assets? Comment below to let us know your thoughts on this topic.

Jamie Redman

Jamie Redman is the News Lead for News. He also lives in Florida and works as a journalist covering financial technology. Redman is an active participant in the cryptocurrency community from 2011. Since 2011, Redman has been an active member of the cryptocurrency community. Redman is a prolific writer for News, with over 6,000 articles on disruptive protocols.

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